By Country in North and South America

• Argentina

• Bolivia

• Brazil

• Canada

• Chile

• Colombia

• Costa Rica

• Dominican

Republic

• Ecuador

• Guatemala

• Mexico

• Peru

• United states

• Uruguay

• Venezuela

Top 5 Packaged Food Industry Trends

ArgentinaReady meals, time savers expand across the countryThe convenience trend started in urban areas a few years ago and is now spreading rapidly across the entire country. Ready meals and convenient packaged food continue gaining popularity among not only young consumers, but also the general population. Instant noodles lead the way, as they are affordable, easy to store, quick to prepare and versatile.

Size mattersAs a way to bypass price controls, companies whose products have been included in the basket of fixed price goods are offering less quantity of the same product, causing them to redesign packaging. As a result, many product developments were focused on package size. It is not uncommon to see an 864g pouch.

Canned/preserved food, a long-term investment in ArgentinaDue to high inflation rates, any food product that can be stored for long periods has become a priority for consumers because it is perceived to have more long-term value. Food with long storage life, including canned/preserved goods, has benefited from the consumer switch.

Closer means better for retail formatsProximity markets are booming in urban districts. Consumers favour smaller but more frequent shopping trips as the average grocery bill becomes smaller, in the belief that expenditure is being reduced, to fight inflation. People tend to visit supermarkets for smaller purchases more often instead of visiting less frequetnly for larger purchases.

Creativity sellsMolinos Rio re launched their dried pasta brand Lucchetti, with a multilevel campaign involving animation characters that overpassed regular marketing actions. The advertising campaign is centred on younger mothers, but with a humorous approach. Advertising campaigns for pasta products are usually much more traditional, using real actors and a straightforward approach presenting the product. The new approach adopted by Molinos, incorporating elements from modern lifestyle such as a mother practicing yoga, really helped the company to stand out.

BoliviaAffordability and increasing distribution coverage push noodles salesThe noodles category in Bolivia has grown rapidly in volume terms, as low unit prices resulted in increased demand from consumers. Offered in flexible packaging and plastic cups, noodles have successfully managed to penetrate different distribution channels such as traditional stores and supermarkets/hypermarkets. Furthermore, price promotions are important and brands such as Maruchan and Ajinomoto are being offered as low as BOB10 for three units, which is proving a very attractive alternative for consumers.

Stevia’s versatility allowing for a health and diabetic positioning in baked goodsDue to the influence of the health and wellness trend in the region, consumption of stevia is increasing rapidly within cakes and pastries. Many brands are switching from sugar to stevia, reflecting an opportunity to offer products to diabetics or to people wishing to lead healthier lifestyles. Lower annual temperatures paired with the stevia trend have caused propolis candies to become popular in pharmacies. Price promotions are being used to boost demand.

Plastic pouch the most popular format for dairy productsPlastic pouches continue to be one of the most popular packaging formats within packaged food in Bolivia. In dairy, for example, UHT milk is mainly offered in pouches in conjunction with other products such as yoghurt and flavoured milk. Traditionally, consumers buy the product, and then hang it within the fridge for storage. Brick liquid cartons are also offered, although at a much higher price, through modern retail channels. Shift towards modern grocery retailers in urban areasEven if traditional channels dominate distribution of packaged food sales in Bolivia, modern retail channel penetration is increasing rapidly. In cities such as Santa Cruz, for example, modern retail channel penetration has reached 25% in 2013, affecting the way Bolivians carry out periodic purchases. Even if modern retail channels keep expanding, the government has implemented initiatives to help traditional stores remain competitive.

Social media, from special occasion to constant interactionCompanies are increasing their advertising activity using social mediums such as Facebook and Twitter. For example, ice cream manufacturer Delicia promoted a new product using a Facebook campaign. The campaign was scheduled around Father’s Day and asked, “what is your dad’s favourite ice cream dessert flavour?” Other companies such as Pil Andina are active on social media, promoting recipes, new products and general product information.

BrazilDemand for ultra convenience opens doorsChanging consumer lifestyles and urbanisation increasingly cause consumers to seek convenient and quick food. Categories with the most potential offer traditional Brazilian fare such as frozen pão de queijo (cheese bread) or frozen aves natalinas (marinated poultry popular around Christmas) in a convenient way. Cheap pouch noodles and snacks in small packaging sizes are also successfully tapping into the convenience trend.

Stiff competition pushes companies to further innovate in Greek yoghurtGreek yoghurt was introduced in Brazil in July 2012 by Nestlé and Vigor. Competition quickly intensified, with players such as Danone and Brf Brasil Foods joining the mix, featuring innovations including reduced fat versions, fruit or cereals combinations, and packaging that stand out from the regular yoghurt options. Nestlé and Vigor have been investing heavily in advertising campaigns, merchandising activity at points of sale and sampling activity in gyms and public parks.

Brazilians become more sophisticated at breakfast timeA traditional breakfast in Brazil comprises bread with spreadable oil and fats or butter, with a glass of milk or coffee. Consumption of breakfast cereals in Brazil is the lowest of all North and South American countries. However, with the emergence of the middle class and increasing disposable income, consumers have been including a wider variety of products, in particular those products that were regarded as expensive such as chilled processed meats, cakes and breakfast cereals.

Shift in grocery shopping habitsPackaged food sales are increasingly moving outside the grocery-retailing realm towards atacarejos, the Brazilian cash and carries. Atacarejos are located outside city centres and are extremely popular among low-income consumers. Large families are the prime target and are willing to travel far and out of their ways to buy packaged food in large quantities, eschewing expensive hypermarkets.

Social media becomes important tool to increase brand awareness in packaged food Companies are turning to social media to stand out in highly competitive categories such as confectionery and olive oil. Facebook, Twitter and blogs were used to promote Andorinha olive oil by Bunge Alimentos and the story of its animated social media character Andorinha Dorinha, promoting usage of the olive oil with recipes from around the world and asking consumers for typical recipes of Brazilian foods to be published in a book. In confectionery, Kraft Foods innovated by developing a Facebook campaign: “Halls Contrata” (“Halls Hires”) targeted at young consumers who could apply for temporary jobs by sending creative videos.

CanadaEthnic consumer and food trends continue to see significant growth Ethnic food trends continue to see healthy growth, with a growing number of categories being impacted, from staples such as bread and rice to indulgences such as ice cream. An increasing immigrant population, the key driver of population growth in Canada; expansion of modern ethnic retailers and foodservice operators; a rising presence of imported brands in retail, such as Binggrae brand of ice cream from South Korea sold successfully through retailers such as T & T Supermarket; and an increased emphasis of mainstream retailers on ethnic cuisine support the trend. While preferences of ethnic consumers pose a challenge for some established mainstream products, they also represent an opportunity for product development and the revitalisation of slow-moving staples, such as canned/preserved food.

Healthier nutrition in spotlight but not all categories see growth in health and wellness segmentHealthier nutrition remains on the agenda, but not all product categories benefit and some show reversal of positive growth trend. For example, after much talk of salt reduction, product development and positive growth in earlier years of the review period, 2012/2013 sees a slowdown and even a decline in categories such as reduced-salt soup. Functional yoghurt has slowed down. In indulgence categories, products positioned as healthier are yet to make an impression. In ice cream, premium products remain the key to growth. While market saturation plays a role, taste, flavour selection and understanding the benefits to health are the factors shaping demand for health and wellness products. Fresh wins over processed in CanadaFreshness, often associated with healthier, better quality and fewer artificial ingredients, remains important to many consumers, helping to support sales of categories such as artisanal bakery, chilled ready meals and soups, pre-packaged salads and others. In response to the trend and encouraging it further (not the least due to higher margins commanded by these products) retailers expand aisles dedicated to freshly-made meals, in-house bakeries and pastry shops, and fresh produce.

Rivalry and growing polarisation in grocery retail Given the highly developed nature of grocery retailing in Canada and in conditions of slow population growth in a relatively small marketplace (about one tenth of the neighbouring US), grocery retail is seeing continuing polarisation between higher-end retailers and retailers placing more emphasis on lower prices. The latter trend is being further reinforced by ongoing expansion of the Wal-Mart Supercenter format, including new smaller urban formats to capture shoppers in city centres, and the opening and expansion of Target in Canada, which is planning to strengthen its food offering and expand grocery aisles.

Private label shows mixed performanceAlthough private label, more specifically President’s Choice, remains popular and sees good growth across many food categories, private label’s success is by no means assured. To improve performance and drive sales, retailers have been rationalising their private label to focus on lines positioned as mid-range and premium segments, with respective product assortments and packaging presentation, to compete more effectively with branded products.

ChileSwitch from fresh to canned/preserved beansCanned/preserved beans are booming in the country and are fairly new to the market. Traditionally, beans were consumed fresh, with no presence of ready-to-eat packaged products. Wasil undertook a massive country-wide launch of a wide variety of canned/preserved beans in tetra-pack packaging, at very affordable prices and offering considerable convenience, especially in comparison to traditional, unpackaged beans, which are very slow to cook according to local recipes.

Re-inventing staple with a healthy twistThe health and wellness trend continues to develop in Chile and along with it comes new products and flavourings. Chileans are significant consumers of rice with a per capita consumption of 8.2kg per year and they are slowly moving towards offerings with added value. This year, Carozzi, one of the leading rice producers in Chile, launched Miraflores La Huerta, integral rice with various seeds, including oats, sunflower, quinoa and linseed. Integral rice grew at rates of 40% in 2012 and is expected to grow even faster in 2013. As the Chilean economy continues to strengthen, consumers are increasingly looking for more premium products.

Chile has the highest per capita consumption of mayonnaise outside Eastern EuropeChileans routinely add mayonnaise to not only their French fries but also their hamburgers, potatoes, sweet corn, hot dogs, rice, chips/crisps and salads. Premiumisation is pushing the value side of the market even higher as well. Brands such as Hellmann’s Premium and Kraft are the fastest growing in the market although they carry a price that is nearly twice that of the more economical ones. These cheaper offerings however must also compete with homemade mayonnaise.

Internet retailing: Saving time with little extra costChilean consumers continue to look for faster and more efficient ways to manage their increasingly hectic lifestyles. Walmart (Lider) as well as Cencosud (Jumbo) and Falabella (Tottus) all have most of their retail offer available for purchase online at prices comparable to those in store. The pages are routinely updated and allow the consumer to shop online and then to pay a delivery fee of around US$2 on most weekdays or US$10 at the weekend. As supermarkets are increasingly the preferred shopping channel for Chileans, an increasing number of consumers prefer to avoid the traffic and checkout lines for a home delivery.

Wasil uses social mediaThe Chilean giant Watt’s acquired Wasil brand products in 2010 and has witnessed the tetra- pack-enclosed products grow at dynamic rates since 2012. The company is present in foodservice and retail and has depended heavily on social media involvement and an advertising campaign that involves a series of 15-second recipes. Beans, lentils and garbanzos are quite popular in Chile and are commonly used in various home-style recipes. The company is leveraging its ready-to-use tetra-pack products to appeal to youth and professionals who are looking for quality and versatile products. The company is expected to continue interacting with Wasil consumers through social media over the forecast period as it has proved to be quite successful recently.

ColombiaNuts benefit from health trendsNuts stand out with strong growth prospects, driven by demand for healthier snacks. Consumers consider nuts an ideal snack and a good source of high-quality energy between meals, with easy-to-find single-serving packages. Companies such as Cía Nacional de Chocolates lead the way, with a wide portfolio of different types of nuts, including mixes such as La Especial with peanuts, almonds and cashews; nuts with dehydrated fruits, such as La Especial with raisins; and low sodium options, such as La Especial low sodium.

Bimbo fortifies white breadFortified/functional bread saw large growth as Bimbo launched Pan Blanco con Actileche, sliced white bread with Actileche. Bimbo is the only brand in Colombia offering fortified bread with extra milk and vitamin A, through its proprietary formula called Actileche, which claims to improve vision, bones and teeth. This fortified white bread is likely to reach a larger audience than fortified whole wheat or multi grain varieties, as white bread is by far the most popular type of packaged/industrial bread in the country.

Colombian fruit snacks mirror traditional cookingColombia has the highest per capita consumption of fruit snacks in Latin America, thanks to the popularity of plantain and yucca chips from brands such as Natuchips (Frito-Lay Colombia) and Taja Miel (Comestibles Ricos Ltda). These snacks play on the Colombian culinary tradition of serving patacones or tostones, fried green plantain chips, and yuca frita, fried yucca, as appetisers or side dishes. Fruit snacks are likely to continue to grow strongly as companies such as Frito-Lay invest further in production and distribution in the country.

More convenience for Colombian shoppersConvenience stores such as Éxito Express and Oxxo continue to expand. With increasingly busy schedules for the whole family, as well as the boom in outlet numbers, convenience stores make it easy to quickly purchase snacks or groceries. However, in contrast to independent small grocers, convenience stores see their best sales from impulse products such as snack bars and impulse ice cream, rather than everyday staples.

Ice cream freezers key to competitionCompetition between Colombina and Meals de Colombia is fierce within ice cream. In order to expand their consumer bases, the two companies are offering free branded ice cream freezers to independent small grocers. These small stores often do not have the liquidity to purchase their own freezers, so the free offer from the leading ice cream companies is welcome, even if the store is expected to agree to exclusively sell ice cream from either Colombina or Meals.

Costa RicaDomestic yoghurt successfully mixes functionality and affordabilityYoghurt emerged as the most dynamic category during 2013, due to growth in functional products promoting digestive health and claiming to boost the body´s defence system due using special probiotic strains and fibre. As a result, local dairy producer Cooperativa de Productos de Leche Dos Pinos RL has been able to capitalise on this trend due to its recently launched line of Bio Balance yoghurts, benefiting from the wide availability of these products and their affordable unit prices, especially when compared to imported brands such as Activia.

Segmentation through premiumisationWithin packaged food, new products overwhelmingly contain natural and functional ingredients, which has led certain manufacturers to position their brands as healthier, gourmet or premium, targeting mainly niche shoppers. This has allowed for strong segmentation between lower-priced offerings without added value benefits and a narrower segment that offers higher-quality products for more money. A good example is the use of olive oil in glass jars made by Alimentos Prosalud to increase the value offer of its most premium lines of tuna and sardines.

Rice, a staple in local Costa Rican dietEven though rice still remains the most important staple food in the country, with a penetration level close to 100% among local families, its growth rates have started to decrease due to the increasing adoption of calorie restrictive diets, especially by women. However, rice along with beans remains the base of most local diets. For the popular local dish, “gallo pinto”, these two grains are combined with other herbs, vegetables and spices for a typical Costa Rican breakfast.

Modern grocery retailers appeal with low prices and convenienceEven though new openings of supermarkets and hypermarkets slowed during 2012-2013, this was compensated by the dynamism observed by convenience stores and the larger discounter formats that Walmart operates in the country through the brand Maxi-Palí. In such a scenario, consumers continued looking for economic unit prices for the most basic nutritional and staple foods, while also responding positively to the rapid development of convenience stores, which have succeeded in offering opportune locations and fast transactions on a daily basis.

International players acquire their way into Costa RicaWhile the Mexican company Sigma Alimentos Costa Rica SA acquired the local dairy brand Monteverde, the Colombian company Grupo Nutresa, owner of the local leading biscuit brand Pozuelo, bought the local ice cream brand Pops. In addition to the activity of international players, the local brewing company Florida Ice and Farm Co SA, acquired the local dairy producer Coopeleche, aiming to undermine the strong dominance in the main dairy categories by Dos Pinos.

Dominican Republic

Dominican consumers want to eat and be healthy tooConsumers in the Dominican Republic have finally turned their attention from health and wellness alternatives to common packaged food options. Low-fat alternatives such as low-fat mayonnaise and low-fat salad dressing proved quite popular in 2013. Whole grain/fibre offerings were also ascendant, dragging up growth for mature categories such as dried pasta and bread. Companies look to continue to innovate with new healthy product launches and engage consumers with a message that “you can continue to eat what you want and be healthy too”.

Greek yoghurt limited to modern channels and international players2013 marked the introduction of Greek yoghurt in the Dominican Republic. Though this trend is still niche, these products can easily be found in modern grocery retailing chains, catering to internationally-minded, upper-income consumers. The brands offered through these channels are entirely international (Nestlé and Yoplait) as local producers have yet to follow the trend.

Did you know? Ready meals and frozen food limited by a traditional distribution landscapeReady meals and frozen processed food are negligibly consumed and stocked in the Dominican Republic, despite the rising demand for quick and easy-to-prepare meal options due to increasing female employment rates and a higher number of busy urban professionals. The reason is as much structural as cultural, as many independent small grocers do not receive a consistent enough electricity supply to invest in the freezers needed to store these types of products. In addition, many consumers still prefer to purchase fresh food, either for taste reasons or due to low household penetration of refrigerators/freezers.

Discounter format makes its appearance in the Dominican RepublicThe discounter concept was introduced in the Dominican Republic in 2012 and appeared to have gained in popularity before the slowdown of the local economy in the first quarter of 2013. This concept appealed to consumers’ interest in one stop shopping and dynamic promotional offers.

Social media: Promotions and discounts by multinational playersCompanies in the Dominican Republic are aggressively using social media tools to entice consumers to support their brands. For example, Frito-Lay has posted promotional events and discount codes on its Facebook page and Nestlé has offered consumers of its Fitness line of cereal to submit bar codes on Facebook to be entered in promotional prize drawingss.

EcuadorQuick and convenient instant noodles show strong potentialCups/bowl instant noodles witnessed impressive growth in 2013, due in large part to Agrovanic SA’s launch of its cups/bowl instant noodles brand Lonchys in December 2012. The product was an immediate success due to the company’s heavy investment in advertising and promotion in conjunction with the launch. This helped generate interest and recognition of the category in general, which previously had not been very well known. Given that the product addresses a large and emerging need for quick and convenient food among the expanding fast-moving urban middle class, this category looks to continue strong growth over the forecast period.

Cross-category brand extension to appeal to a broader audienceBrand extensions were seen across packaged food categories in 2013. Nestlé Ecuador SA effectively cross-branded its Fitness breakfast cereal, Ricacao chocolate-based flavoured powder drinks, and La Vaquita powder milk brands through the release of biscuit brand extensions. For each brand, the biscuits option was marketed as having the same positioning, flavour and health and wellness attributes as the original brands. Additionally, Alpina launched cow’s milk in 2013. The new brand will target lower- and middle-income groups through independent small grocers, which will help the company expand the audience for its more expensive yoghurt and cheese offerings.

Canned tuna for breakfastEcuadorians are substantial consumers of canned tuna, which is the key ingredient in the very popular local dish called encebollado. The dish is eaten as a breakfast snack (and is said to cure hangovers) throughout the country despite the large cultural and culinary differences between the Pacific coast and the highland interior. As a result, per capita consumption of canned/preserved fish/seafood in total volume terms in Ecuador is fourth highest in the region, with consistently strong growth rates expected over the forecast period.

Supermarkets rush to fill the distribution gap in new urban areasEcuador’s cities are expanding rapidly, with new neighbourhoods and suburbs emerging among the large cities in the last five years and many small towns growing as well. This rapid development has left a void in the grocery retailing market in these areas, and supermarket chains have rushed in to capitalise. Modern grocery retailers such as Aki and Tia have been busy opening locations in these newer urban areas to entice consumers from all income groups and capture brand loyalty as the first grocery outlets in the areas.

Unilever successfully counter-attacks through social platformUnilever Andina Ecuador SA released a widespread advertising campaign in 2013 in support of its ice cream brand Casero. The company created an online promotion called “La Ruta Casero”, (“the Casero route”) as a response to Heladosa SA’s aggressive campaign to promote its brand Artesanal, which is very similar to Casero. “La Ruta Casero” was a contest on Facebook that allowed consumers to vote for the city where they wanted the route to pass. The cities chosen would have an all-day event with traditional games and food, prizes, free Casero products and musical entertainment. This strategy proved very popular and showed a previously hidden avenue for marketing through social media platforms.

GuatemalaNatural and healthy: Niche but growing along global trendThe health niche is beginning to grow in Guatemala with more consumers paying attention to nutrition, fat content and beneficial ingredients such as probiotics. Categories such as yoghurt showed strong growth in volume terms, since it has been promoted as healthy for all ages, from toddlers to adults. In addition, more products have entered the market with whole-wheat ingredients and lower fat content such as Tortillas Bimbo with two new alternatives in whole wheat and low fat. Products such as Kern’s Ketchup are also taking advantage of this trend, supplemented by advertisements emphasising that the product is made with 100% tomatoes.

New packaging for staple canned beans makes them more affordableAlimentos Kern de Guatemala SA has released two new packaging innovations for the company’s ubiquitous canned beans brand Ducal. In 2012, the company introduced 29oz flexible plastic/aluminium packaging that was more affordable and more lightweight than metal food cans. This was continued in 2013 with the release of aseptic brick containers that have proven to be even more cost-effective, allowing the company to lower prices even further.

Every little helps in the kitchen: Women joining the workforce switch to ready-madeTomato pastes and purées have shown negative growth in volume terms in Guatemala in 2013. As more women decide to work outside the home, they do not have time to cook from scratch and have altered their shopping habits accordingly. As a result, products such as ready meals, wet cooking sauces, and pasta sauces are registering positive growth, taking sales away from tomato pastes and purées.

Traditional retailers still strong thanks to wide geographical reachSmall independent grocers are still very important in Guatemala, mainly due to strong penetration in both urban and rural areas of the country. These outlets sell products with small pack sizes that are more affordable to budget-conscious consumers, and many still offer credit based on trust. However, they are confronting increased competition from supermarket chains such as Walmart and La Torre (Unisuper SA), which are also expanding to rural areas of the country, showing that there is growing interest in shopping at larger stores.

Advertising focus on traditional above-the-line media (billboard, television and radio)Multimedia advertising campaigns are very common in packaged food in Guatemala, mainly from multinational companies that have larger budgets for advertising. Companies usually take advantage of new products and flavours to launch mass media campaigns. For example, Kraft Foods launched Trident Twist Gum, which was advertised through billboards, television and radio. Kern also released a large-scale campaign touting its new Kern’s Mayonnaise as the perfect match with the company’s leading brand, Kern’s Ketchup.

MexicoUrbanisation and long working hours push for convenienceConvenience products, most notably frozen food and ready meals, are expected to offer significant opportunities for growth as they are underdeveloped categories gaining popularity thanks to long commutes, longer work days and a faster pace of life in Mexico. This situation is driven by the recent negotiation between one of the biggest producers in packaged frozen ready meals and food, Heinz, and the biggest retail store in Mexico, Walmart. The strategy will increase for the coming years. Greek yoghurt makes its entrance following US success storyAfter strong success in the US for many years, Greek yoghurt entered the Mexican market in early 2013. It is now carried by Nestlé, Yoplait and Extra Special, Superama’s premium private label line. Its release caught much attention but it will be interesting to see if such a thick yoghurt can be successful in the long run in a country where consumers prefer light, drinkable yoghurt.

Mexicans love pastriesMexico has the highest per capita consumption of pastries in the world. This is because pastries are an important part of Mexican cuisine and are commonly consumed for or as part of breakfast and snacks in restaurants and coffee shops.

Convenience stores slowly replace independent tiendasConvenience stores are opening at a rapid rate in Mexico and are led primarily by OXXO. According to local statistics, for every convenience store that opens in a neighbourhood, 8-10 independent small grocers close. People prefer the convenience and variety of products offered by a convenience store, and over time will stop visiting “mom and pop” stores. For example, at every convenience store it is possible to find the two biggest brands of ice cream (Nestlé and Holanda) while in independent small grocers only one brand is likely to be available.

Pick your favourite dish in the margarine warThe margarine industry has employed an interesting advertising strategy, with each major brand choosing a dish to be its flagship, which was then used in advertising and in-store strategies for increasing sales. This was the case with Primavera which chose eggs as its flagship, while La Villita opted for pancakes. This approach led to a price war in the category, increasing sales volumes but undermining sales value.

PeruSoup sales take off with a local twistDehydrated soup is growing rapidly in Peru. Companies have made major efforts to penetrate independent small groceries, reflecting significant growth rates during the last five years. Along with this, marketing efforts have also increased and companies have successfully incorporated Andean ingredients to appeal to local consumers, as traditionally, fresh ingredients are preferred over processed food.

Peruvian gastronomy successfully inspires new product developmentsLocal ingredients and local flavours continue to be incorporated in products to appeal to consumers. Driven by the local gastronomy boom in Peru, the trend is reflected in multiple categories such as bakery, dehydrated soup, sweet and savoury snacks, sauces, dressings and condiments that increasingly rely on local ingredients such as aji, Peruvian chilli, to develop products. For example, Lay’s introduced many products flavoured as local dishes such as chips flavoured as “pollo a la brasa”, a typical Peruvian dish.

Evaporated milk represents two thirds of dairy sales in PeruDiluted evaporated milk is used to create a drinking milk product or to use in different preparations, especially for breakfast. The fact that it is easily preserved and stored, since traditional packaging is a metal can, and that lower-income people make it last longer by mixing it with more water than is suggested, makes it the most popular milk type in Peru. In recent years, producers have been making efforts to migrate consumers from evaporated milk to UHT milk, promoting UHT milk to be less expensive than evaporated milk. The migration is slow, as consumers prefer the different flavour of evaporated milk.

Consumers mix and match between traditional and modern grocery formatsWith increasing disposable incomes, consumers are complementing their shopping habits by purchasing in both traditional markets and modern retail channels, mostly represented by supermarkets and hypermarkets. With the significant penetration of modern retail channels in Peru, consumers are increasing consumption via this channel due to product variety, promotions and the multiple payment options offered. On the other hand, lower-income groups continue buying day-to-day purchases in traditional stores.

Social media campaigns involve consumersIntegrating consumers into the creation of the product appears to be one of the key promotions used by companies to ensure the success of newly released products. For example, Alicorp launched an interesting social media campaign in sauces in which consumers may opt for different flavours to be released, similarly the brand Lay’s also let consumers choose the next flavour to be launched using Facebook, creating a high level of internet social activity that increased product awareness and success.

United StatesAgeing population and endorsement by doctors boost convalescence productsConvalescence products in meal replacement have seen dynamic growth in the US in the past few years, with brands such as Ensure, Boost and Glucerna seeing double-digit year-on-year increases. Much of this expansion derives from older consumers, specifically consumers closer to retirement and in the baby boomer generation. Many are advised by their doctors to take such products to fill nutritional gaps. In addition, Abbott Laboratories and other companies have been introducing stronger and higher protein variants to give these older consumers added energy. This category is set to expand further as the baby boomer generation begins to retire.

Miniature packaging in confectionery: For personal consumption or to shareMass-market confectionery is expected to see considerable miniaturisation, as Mars and Hershey introduce mini versions of many of their products in 2013. Mars is releasing Mini Snickers and Hershey is introducing Mini Kit Kats. They will have similar packaging, with both of them featuring small grab-and-go bags that will be impulse purchases, largely for personal consumption. In addition, they will have resealable stand-up pouch bags designed for sharing. This trend is not confined to the chocolate category, as Mars also introduces Starburst Minis, which feature a similar packaging format.

Did you know? Americans consume 82 times more chilled lunch kits than Western European counterpartsWith amusing advertisements and attractive promotions, chilled lunch kits have long been a staple in the lives of American schoolchildren. And though these children eventually grow older, their fondness for chilled lunch kits remains – trade sources suggest that one in four Lunchables (Oscar Mayer) is consumed by an adult. And with new products being introduced on a year-to-year basis - such as the new Lunchables with Chiquita’s Real Fruit Smoothie - chilled lunch kits have managed to stay ahead of its two biggest challenges - bored consumers and health-conscious parents - while providing extra convenience: no need to re-heat, defrost or assemble, the product is ready to be consumed directly from the box.

Amazon arrival in online grocery could finally see this format take offOnline grocery shopping has been available for many years in the US. However, due to the low margins in the grocery business and the expenses involved in delivering door to door, online grocery services have not taken off and remain a niche offering that is only available in a few densely populated urban and suburban areas such as Boston, Chicago, New York City and San Francisco. Online giant Amazon.com’s decision to launch an Amazon Prime fresh grocery delivery service in Los Angeles in June 2013 after testing grocery delivery in its home town of Seattle has created considerable excitement with unlimited same-day or next-day early morning delivery for US$299 per year together with delivery options customised for perishable goods.

Strong M&A activity to impact packaged food landscapeMergers and acquisitions activity has been uncharacteristically strong in the packaged food industry in the past few years, the most recent being H.J. Heinz’s acquisition by an investment consortium headed by Berkshire Hathaway for US$23.3 billion in February 2013. In another deal that has yet to reach fruition, Shuanghui, a Chinese privately-owned meat processing business, is offering US$4.7 billion to take Smithfield Foods, a US pork producer, private. These changes in ownership indicate considerable change for the companies’ direction, which that could include packaging and pricing strategy.

UruguayIncreasing penetration of freezers shows great potential for frozen foodReady meals have grown rapidly in the country, particularly in frozen ready meals, as the penetration of freezers has risen across the country. The supply of products has also improved. For example, Tienda Inglesa now has a wide variety of its own ready meals. Underpinning the growth of ready meals is an important convenience trend that is increasing rapidly in the country, particularly among young workers who are typically faced with hectic lifestyles and limited time to prepare and eat food.

Health and wellness, the main influence behind new product developmentThe health and wellness trend is rapidly influencing change in the ingredients used in products. For example, there is an important trend to reduce the sodium content in a variety of products. In dehydrated soups, there are many examples of products that are now reduced in sodium such as Unilever’s Knorr Vitalie and Nestlé’s Maggi Equilive soups. In addition, the variety of products targeting celiac disease sufferers and diabetics has also increased during recent years.

Uruguayans go for pasta for taste and quality over the convenience of noodlesAlthough the presence of noodles in Latin America is growing rapidly, consumption in Uruguay continues to be negligible. Some reasons may include the significant consumption of fresh pastas in Uruguay, which usually have higher quality than other pasta types, and consumers’ traditional preference for homemade products causing them to eschew products such as noodles that are more focused on convenience rather than quality taste.

Internet retailing gains importanceInternet retailing continues to achieve significant growth rates during the last few years. Companies such as Tienda Inglesa, Devoto and Multiahorro have increased their internet presence, offering the option to buy a variety of products online. In addition, the use of loyalty programmes and fidelity cards has also changed the way Uruguayans buy their products, offering the option to earn points that can be exchanged for different gifts.

Export restrictions create domestic production surplus in meatDomestic companies are struggling to export to Argentina given recent protectionist trade restrictions. This could lead to a surplus of domestically produced food in the packaged food market during 2013, which could drive up shares for local players flooding the retail food market with goods originally intended for sale in Argentina. This could also push down average retail prices in the short term, as manufacturers and retailers look to shift this surplus onto consumers. If the situation persists, it could have economic consequences as local players are forced to cut jobs in the face of lower international demand.

VenezuelaOpportunities for those able to get their product to marketThe majority of companies in Venezuela are having problems obtaining foreign currency to import finished goods and/or raw materials needed to produce products within the country. This has severely limited any products from booming in 2013 as consumers purchase whatever is available at the store when they are shopping.

New products highlight need for convenienceChanges in Venezuelans’ lifestyles have moved companies competing in packaged food to point new product development towards on-the-go consumption and convenience formats. In 2013, Alimentos Heinz launched flexible packaging for leading brand Heinz in prepared baby food, which allows direct consumption from the packaging without requiring the use of a spoon. At the end of 2012, Alimentos Polar and Spanish group Pascual released the first UHT/long-life yoghurt, Migurt, which needs no refrigeration, making it a very convenient and healthy option for snacking.

Did you know? Venezuelans among the top consumers of pasta and ketchupVenezuela ranks among the top countries in the world for consumption of both pasta and ketchup. Pasta, which is under price control regulations, is a cheap and readily available carbohydrate option for which Venezuelans have developed a strong preference at both lunch and dinner. Among low-income groups, pasta is served mainly with ketchup instead of pasta sauce.

Product shortages produce shift to modern retailersVenezuelans are migrating to modern grocery channels, largely as a result of price controls and import restrictions that have led to widespread product shortages within packaged food. Nationwide supermarket chains such as Central Madeirense are able to not only offer lower prices than independent small grocers thanks to economies of scale, but their more consistent and wider product offer is becoming increasingly important to shoppers who are tired of visiting three or four stores to complete their basic grocery shopping.

No more margarineMargarine has largely disappeared from the shelves of Venezuelan retailers. With price control regulations on margarine and spreadable oils and fats, companies such as Alimentos Polar, which produces Mavesa, have chosen to stick only with the tub format of the brand, which falls under spreadable oils and fats. As such, stick margarine is no longer produced by Polar and cannot be found at retailers.

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